Rwanda Takes UK to Court for £134 Million Over Cancelled Migrant Deal
London, 23 March 2026
Rwanda has launched legal proceedings against the United Kingdom at The Hague, demanding £134 million in unpaid dues from their terminated asylum partnership agreement. The dispute centres on whether the UK properly cancelled the controversial 2022 deal that would have sent migrants to Rwanda for processing. Rwanda argues the agreement was never formally terminated, leaving Britain’s financial obligations intact. The UK contends Rwanda’s legal challenge stems from anger over British sanctions imposed due to Rwanda’s alleged involvement in Democratic Republic of Congo conflicts, rather than genuine contractual grievances.
The Financial Architecture of the Collapsed Deal
The original asylum partnership agreement, entered into in 2021 and formalised as a binding treaty in 2023, established a comprehensive payment structure totalling £490 million over five years [1]. Under this arrangement, the UK committed to paying into an Economic Transformation and Integration Fund, with the first instalment of £240 million divided into two parts: half in April 2022 and the remainder after the arrival of the first 300 asylum seekers in Rwanda [1]. The payment schedule included £100 million in April 2023, followed by annual payments of £50 million each in 2024, 2025, and 2026 [1]. The UK successfully transferred the initial £120 million, the April 2023 payment of £100 million, and the April 2024 instalment of £50 million before Prime Minister Keir Starmer cancelled the deal in November 2024 [1]. This means the UK has paid 270 million, or £270 million, leaving two outstanding annual payments of £50 million each that Rwanda now seeks to recover [2].
Legal Arguments and Political Motivations
The case, which opened on Wednesday, 18 March 2026, at the Permanent Court of Arbitration in The Hague, centres on fundamentally different interpretations of how the agreement was terminated [2]. Rwanda’s Attorney-General Emmanuel Ugirashebuja argues that formal termination discussions never occurred, stating that ‘those discussions did not take place. Nor was the agreement formally terminated’ [1]. The UK’s legal adviser Tamsin Stubbing counters that Rwanda’s real motivation is extrinsic to the contractual dispute, asserting that ‘Rwanda’s real motivation is extrinsic to the subject matter of this case. In February 2025, the UK became gravely concerned about Rwanda’s role in the escalating conflict in the DRC’ [1]. This accusation stems from diplomatic actions announced on 25 February 2025, when the UK ceased attendance at Rwandan-hosted events, limited trade promotion, and paused direct aid [1]. Rwanda responded the same day by issuing a rescission letter, withdrawing from an agreement purportedly reached in November 2024 to forgo future payments [1].
Beyond Financial Claims: Refugee Resettlement Disputes
Rwanda’s legal challenge extends beyond the outstanding £100 million, seeking an additional £6 million for the UK’s alleged breach of a reciprocal agreement to house vulnerable Rwandan refugees [2]. This claim highlights the bilateral nature of the original partnership, which was designed not merely as a one-way transfer mechanism but as a comprehensive refugee resettlement framework. Justice Minister Emmanuel Ugirashebuja emphasised that ‘the United Kingdom’s intransigence has left Rwanda with no other choice to vindicate its rights’ [2]. Rwanda is also pursuing a formal apology from the UK for breaching the agreement [2]. The timing of this legal action coincides with increasing international scrutiny of Rwanda’s role in regional conflicts, with Professor Phil Clark from SOAS University of London noting that ‘the timing of Rwanda’s case against the UK is clearly deliberate, as the country attracts increasing criticism over its support for M23’ [2].
Implications for Current Migration Policy
The legal dispute unfolds against a backdrop of continuing cross-Channel migration, with almost 600 migrants making the dangerous crossing in the week leading up to 21 March 2026 [3]. On 21 March alone, 116 small boat migrants crossed the English Channel, with GB News counting 55 migrants disembarking a Border Force vessel in Dover [3]. Former Border Force Director General Tony Smith described abolishing the Rwanda plan as Starmer’s ‘biggest mistake’ on migration policy, stating ‘I thought that was our best hope’ [3]. The Supreme Court had previously ruled the original scheme illegal in 2023, leading to a revised arrangement before Labour scrapped the legislation entirely in July 2024 on Starmer’s first day in office [3]. British lawyers were scheduled to respond on 20 March 2026, with both sides presenting closing arguments on 21 March 2026, though the Permanent Court of Arbitration is expected to take several months to issue its final ruling [2].